Gain Capital, owner of the forex retail brand Forex.com and the largest forex broker on the US market, reported a 243% rise of its net income for 2016, to $35.3 million. The operating profit of Gain Capital in 2016 also rose significantly – by 228% from 2015, to $57.7 million.
According to the company data, the main driver of the profit was the broker's retail segment, with a profit amounting to $115.7 million and a net revenue of $336.3 million, while the institutional brand GTX had a profit of $5.4 million and net revenue of $30.2 million. The futures segment of Gain Capital had a more modest contribution to the overall performance with segment profit of $4.7 million, reflecting a margin of 10%.
In its statement Gain Capital pointed out that the good full year performance was mostly driven by a strong last quarter. The data shows that in that period the retail segment generated net revenue of $97.5 million and segment profit of $40.8 million, reflecting a margin of 42%, while the institutional segment generated net revenue of $8.7 million and segment profit of $1.4 million, reflecting a margin of 16%.
At the same time, however, the company report revealed that this February the performance was not so stellar neither in monthly, nor in annual terms.
The monthly OTC trading volume stood at $170.2 billion, a decrease of 19.0% from January 2017 and 38.4% from February 2016. At the same time, the active OTC accounts were 4.6% more than in January to 133 027, but 7.4% less than last February. It is not clear whether the numbers reflect of the acquisition of over 47 000 client accounts from FXCM on February 24
, following the dramatic exit from the US market of the latter.
The ECN volume of GTX in February also dropped both on monthly and annual base. It stood at $221.6 billion – a decrease of 16.8% from January 2017 and an increase of 27.4% from February 2016. The Swap Dealer volume in February was $61.5 billion. It posted a decrease of 36.3% from January 2017 and 3.9% from February 2016.
“GAIN Capital closed out a milestone year with a strong fourth quarter performance, as increased trading volatility and continued progress scaling and diversifying our business helped drive record quarterly adjusted EBITDA,” commented Glenn Stevens, CEO of GAIN Capital. “We are pleased that we have completed a successful integration of the City Index business, exceeding our $45 million cost synergy targets, while optimizing the combined business to realize meaningful margin expansion. Looking forward, with our solid balance sheet, strong brands and global reach, we are well positioned to grow the business both organically and inorganically and further our long-term objective of growing market share leadership in our retail, institutional and futures businesses.”
Gain Capital is one of the major retail forex and CFD brokers in the world. It is currently regulated in eight jurisdictions, with approximately 140,000 customers and over $1.5 billion in assets. In addition to its US regulated retail forex business, Gain operates regulated retail trading operations under the brands Forex.com and City Index in the United Kingdom, Japan, Hong Kong, Australia, Singapore, Grand Cayman and Canada. Gain Capital also has a US-based retail futures business and the institutional trading platform GTX.